## African Promise
Registered charity number 1122285
Trustees’ Report & Accounts for the year ended 31 March 2021
## African Promise Index to the Annual Accounts 2020-21
|Legal, Reference and Administrative Information|1|
|---|---|
|Trustees’ Report||
|Structure, governance and management|2|
|Objectives & activities|2-3|
|Achievements & performance|3-4|
|Financial review|4|
|Statement of Trustees’ Responsibilities|5|
|Risks & safeguarding|5|
|Trustees’ declaration|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Accounts|8-11|
|Independent Examiner’s Report|12|
## African Promise Legal and Administrative Information
## Registered Address
97a Stormont Road Battersea London SW11 5EJ
Charity number
1122285
Trustees
Christopher Ott (Chairman) Gary Shiels (Treasurer) Katherine Lawson Nicola Coldman
Founding Director/Settlor
Charles Coldman
Principal bankers (in the UK)
CAF Bank Ltd Kings Hill West Malling Kent ME19 4JQ
Principal bankers (in Kenya)
Absa Group Ltd (formerly Barclays Bank Kenya) Voi Branch PO Box 720 Voi 80300 Kenya
Principal currency brokers
Ebury Partners UK Ltd Third Floor, 100 Victoria Street London SW1E 5JL
Equals Group Plc
Vintners’ Place, 68 Upper Thames Street London EC4V 3BJ
VFX Financial Plc Second floor, 65 London Wall London EC2M 5TU
Independent Examiner
John Southworth FCA
Southworth and Co Ltd Chartered Accountants Four Elms Edenbridge Kent TN8 6NE
1
## African Promise Trustees’ Report for the Annual Accounts 2020-21
The Trustees present their Report and Accounts for the year ended 31 March 2021.
## Structure, Governance & Management
African Promise is a Charity under the terms of Section 3 of the Charities Act 1993 and 2006. The charity was registered with the Charity Commission on 13[th] January 2008 under the registration number 1122285. The charity is governed by the Charitable Trust Deed of 10[th] December 2007.
Under the Trust Deed the power of appointing new Trustees of the Charity is vested in the Settlor, the charity’s founding director. The Trustees shall at no time exceed four in number. There are currently no official policies and procedures for the induction and training of new trustees. There were no appointments or resignations during the year.
The Board of Trustees, in conjunction with the founding director, is responsible for the governance and strategic direction of the charity. The founding director is responsible for ensuring the charity delivers its objectives.
## Objectives and Activities
## Charitable purposes and public benefit
The principal objective of the charity is to promote and provide for the advancement of education in primary schools in Kenya, in particular by supporting the development of schools in the Kasigau region by improving learning environments, enhancing pupil welfare and well-being, and removing barriers to accessing education.
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the charity and when planning the future activities. The trustees assess how new activities planned will contribute to the overall aims and objectives they have set and periodically review existing activities to ensure ongoing public benefit.
## Activities
The charity focuses on the following core activities across its partner schools:
- Improvements and upgrades to infrastructure including through the construction and renovation of classrooms, WASH (water, sanitation and hygiene) facilities, kitchen/dining halls, offices/staffrooms and more.
- The support of a school feeding programme to ensure all pupils receive a daily lunchtime meal during term-time.
- Provision of funding towards the salaries of much-needed extra teachers and support staff including cooks and watchmen.
- The ad-hoc supply of furniture and equipment, learning resources and materials, and funding for educational programmes and activities.
2
African Promise Trustees’ Report for the Annual Accounts 2020-21
To support these activities the charity engages in raising funds from the general public and from private organisations in the UK and elsewhere. The charity is registered with HMRC to claim Gift Aid on eligible donations.
## Achievements and performance
The nature of the charity’s activities in the year was impacted by the Covid pandemic which resulted in the closure of schools in Kenya from March until October 2020. During this period, unrestricted funds were diverted away from the lunch programme (which was suspended) and building projects towards the salaries of school-employed staff and towards helping create a Covid-safe environment in schools.
Notable achievements and highlights of the year included:
- Provision of £34,249 in cash to pay at least 50% of but, for a time and for some staff, up to 100% of salaries of around 75 school-employed teachers and support staff.
- The continuation of the redevelopment of an eighth partner school at Mkamenyi Primary on which expenditure to date now totals more than £118,500.
- Providing over 25,000 kg of food which was used to prepare approximately 157,500 lunchtime meals after the reopening of schools.
- A package of measures to help with Covid prevention including cleaning equipment, PPE, handwashing stations, soap/hand-sanitiser, clean water, and waste incinerators.
The charity continued to oversee the implementation, management and administration of its activities and continued to work with local suppliers, contractors and tradespeople.
These activities helped to attract children to school in the first place (especially following the Covidenforced closures), to keep them in school, and to create a safe and conducive learning environment.
## Fund generation
Despite the challenges presented by the Covid pandemic and associated lockdowns/public health measures in the UK, which resulted in the cancellation of mass participation events such as the London Marathon and the charity’s own events including an inaugural Golf Day and annual Carol Service, total income for the charity in the year of £166,453 still represented an increase on that of 2019/20 (£155,771).
Income continued to be generated from a broad and diverse range of sources including both new and existing donors, supporters and partners. Notable donations and activities in the year included:
- Grants totalling £28,850 from the Ratanben Zaverchand Kara (RZK) Foundation and £9,981 from the Geoff Herrington Foundation towards the redevelopment of Mkamenyi Primary
- A further £27,600 of donations from grant-making trusts including Hazel’s Footprints Trust, The Hugh Symons Charitable Trust, The Souter Charitable Trust and The Mageni Trust.
- The donation of £4,800 of entry fees and sponsorship from the cancelled Golf Day.
- £16,000 donated by long-time corporate partner, Aspect Capital.
- A Christmas Prize Draw and a Spring Prize Draw which raised a total of £3,300 (net)
3
## African Promise Trustees’ Report for the Annual Accounts 2020-21
- £1,716 raised by ambassadors David & Jenny Harkin including £1,000 from Flora’s Small Charity competition
- £2,255 received from Kids4Kenya, the charity’s independent ‘sister’ charity in the US; and
- The receipt of winding-up funds of £416 from The Karira Trust (number 1136656) who had identified us as a charity that shared similar objectives
The charity’s day-to-day fundraising activities were overseen and implemented by the founding director, complemented by paid and pro-bono consultants providing ad-hoc and on-going support in areas such as PR and digital marketing.
Expenditure on fundraising and marketing activities in the year of £10,641 meant the charity returned £15.60 (2019/20: £11) for each £1 invested.
The Trustees would like to place on record their sincere thanks to all those who have supported the charity and its partner schools, their staff and pupils during these difficult times.
## Financial Review
The Statement of Financial Activities to follow (page 6) shows the combined income and expenditure of the charity in the UK and Kenya for the year to 31[st] March 2021.
The accounts show total income for the year of £166,453 against expenditure of £192,543, resulting in a deficit of £18,701 after accounting for exchange rate gains. The year closed with total funds of £72,486, of which £41,068 was held in restricted funds _(see Note 8 in the Accounts for further breakdown)._
## Reserves policy
It is our policy to maintain sufficient funds in reserve to enable core activities to continue over a period of 3 months should a shortfall in income occur and to take account of potential risks that may arise. The Trustees have determined this as approximately £9,000 for the forthcoming year. The charity held ‘free’ general funds of £31,418 at the year end and the Trustees therefore believe that the current level of ‘free’ reserves is satisfactory and furthermore that the scale of our current operations requires no change to the reserves policy.
## Currency exchange
The Trustees had set the budgeted exchange rate for the year at 130KES:£1 and continued to use a mix of spot trades and forward currency contracts in order to achieve this. In the year the charity sold £152,500 in exchange for 20,703,000 KES, giving an actual average exchange rate of 135.76KES:£1. The charity used three currency brokers in the year for these purposes: Ebury, Equals and VFX.
4
## African Promise
## Trustees’ Report for the Annual Accounts 2020-21
## Statement of Trustees’ Responsibilities
Company law requires the trustees to prepare financial statements that give a true and fair view of the state of the affairs of the charity at the end of the financial year and of its incoming resources and application of resources. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and which enables them to ensure that the financial statements comply with the Companies Act 1985. The trustees are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## Risks & safeguarding
The trustees have identified and assessed the major risks to which the charity is exposed, including internal fraud, currency market volatility, loss of key individuals and reliance on few funders, and systems, processes and measures have been established to mitigate those risks.
African Promise ensures statutory requirements concerning disclosure checks are met, maintains an up-todate safeguarding policy and procedures, and provides safeguarding training to all staff and volunteers. There were no reported safeguarding incidents in the year.
## Declaration
The Trustees’ Report was approved by the Trustees and signed on their behalf by:
Trustee Date Christopher Ott 28 February 2022
Chairman
Gary Shiels 28 February 2022 Treasurer
5
## **African Promise**
## Statement of Financial Activities for the year ended 31 March 2021
|Notes
Incoming resources
2
Incoming resources from generated funds
Voluntary income
Gift Aid & investment income
Total incoming resources
**Resources expended**
3
Charitable activities
Cost of generating voluntary income
Governance & administration
Total resources expended
Net incoming resources
before transfers
Transfers
Gains and (losses) on currency exchange
6
Net movement in funds
Total funds brought forward
Total funds carried forward|Unrestricted
Funds
2021
£
102,862
8,057
110,919
26,612
10,641
5,150
42,403
68,516
( 59,511)
1,183
10,188
21,230
31,418|Restricted
Funds
2021
£
55,534
-
55,534
150,140
-
-
150,140
( 94,606)
59,511
6,206
( 28,889)
69,957
41,068|Total
Funds
2021
£
158,396
8,057
166,453
176,752
10,641
5,150
192,543
( 26,090)
-
7,389
( 18,701)
91,187
72,486|Total
Funds
2020
£
149,183
6,588|
|---|---|---|---|---|
|||||155,771|
|||||160,464
14,143
4,710|
|||||179,317|
|||||( 23,546)
-
2,483|
|||||( 21,063)
112,250|
|||||91,187|
page 6
## **African Promise**
## Balance Sheet as at 31 March 2021
|Notes
Fixed assets
Current assets
Debtors
Cash at bank and in hand:
CAF Bank CafCash account #00016284
Pounds sterling cash
Barclays Bank of Kenya account #1079831
Barclays Bank of Kenya account #1082433
Kenyan shillings in cash
Total current assets
Liabilities
7
Net assets
Funds of the Charity
8
General 'free' funds
Restricted funds
**Total funds**
Signature
Gary Shiels
Treasurer
The Accounts were approved by the trustees on
and signed on their behalf by :|Total
Funds
2021
£
-
-
68,624
193
943
2,187
737
72,684
( 198)
72,486
31,418
41,068
72,486
Date
28/02/2022|Total
Funds
2020
£
-
-
84,983
8
11,954
1,090
890|
|---|---|---|
|||98,925
( 7,738)|
|||91,187|
|||21,230
69,957|
|||91,187|
||||
page 7
## **African Promise**
## Notes to the Accounts for the year ended 31 March 2021
1. Accounting Policies
The principal accounting policies are summarised below. They have been applied consistently throughout the period.
## a. Basis of accounting
The Accounts have been prepared under the historical cost convention, in accordance with applicable accounting standard and comply with the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued in March 2005 (SORP 2005 ).
## b. Fund accounting
Unrestricted funds are available for use at the discretion of the Trustees in futherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
## c. Incoming resources
Income is recognised in the period in which the charity is entitled to receive it and when the income can be quantified with reasonable accuracy.
Grants are recognised when the charity becomes beneficially entitled to them. Investment income is included when
receivable. Incoming resources from tax relcaims are included at the same time as the gift to which they relate.
## d. Outgoing resources
The cost of charitable activities includes costs incurred by the charity in carrying out its activities and services. It includes costs directly attributed to those activities and a share of indirect costs necessary to support them.
Governance costs comprise the costs associated with meeting the constitutional and statutory requirements of the charity and include any costs associated with the preparation and examination of statutory accounts.
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs which relate specifically to a particular activity are allocated wholly and directly, others are apportioned between different activities on an appropriate basis.
## e. Foreign exchange
This includes any gain or loss arising on translating transactions carried out in Kenyan Shillings to GB Pounds and vice-versa. Transactions during the year are translated at an average exchange rate for the year and closing cash balances are translated at the year end exchange rate.
## f. Assets
Kenyan cash and bank balances are converted to GB Pounds using the exchange rate operative at the year end date.
page 8
|2.
Analysis of incoming resources
Voluntary income
Trusts & foundations
Individual giving
Corporate
Kids4Kenya
Supporter/community fundraising
Events
Other
Investment & Gift Aid income
Gift Aid
Interest
3.
Analysis of resources expended
On-going programme costs
Feeding programme
Teacher & support staff salaries
One-off project costs
Infrastructure & buildings
Resources & equipment
Learning programmes
Water supply
Support costs
4
Staff costs
Travel, transport & accommodation
Office costs
Fundraising materials & services
Advertising, PR & website
Challenge events
Events
Bank charges
Regulatory & memberships
Other|Charitable
activities
2021
£
13,494
34,249
88,936
20,217
-
385
14,754
3,375
1,274
-
-
-
-
-
-
68|Fundraising
costs
2021
£
-
-
-
-
-
-
7,357
-
40
713
2,299
444
( 212)
-
-
-|Unrestricted
Funds
2021
£
27,600
48,246
16,950
2,255
3,585
3,339
887|Restricted
Funds
2021
£
48,831
6,644
-
-
-
-
59|Total
Funds
2021
£
76,431
54,890
16,950
2,255
3,585
3,339
946|Total
Funds
2020
£
64,959
41,849
10,000
6,700
19,278
6,397
-|
|---|---|---|---|---|---|---|
||||102,862|55,534|158,396|149,183|
||||8,057
-|-
-|8,057
-|5,760
828|
||||8,057|-|8,057|6,588|
||||Admin
costs
2021
£
-
-
-
-
-
-
3,456
-
1,113
-
-
-
-
518
-
-|Governance
costs
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63
-|Total
Funds
2021
£
13,494
34,249
88,936
20,217
-
385
25,567
3,375
2,427
713
2,299
444
( 212)
518
63
68|Total
Funds
2020
£
32,479
19,681
82,103
2,417
1,508
400
24,597
6,149
2,214
1,005
885
1,420
3,659
357
263
180|
||176,752|10,641|5,087|63|192,543|179,317|
page 9
## 4. Support costs
## Staff costs
Staff salaries are allocated 100% towards charitable activity for Kenya staff and 40% charitable activity, 40% fundraising and 20% administration for our Director's consultancy fees. All office and staff costs incurred in Kenya are allocated 100% towards charitable activities.
## Fees for examination of the accounts
The independent examiner is making no charge for his examination.
## 5. Taxation
The charity is exempt from corporation tax on its charitable activities.
## 6. Gains and losses on currency exchange
||||
|---|---|---|
|6.
Gains and losses on currency exchange
Opening cash and bank balances translated at
closing rate for the previous year
KES 1,915,760.60 @137.5
Income less expenditure for the year translated
at average rate for the year
(KES 1,390,870.30) @135.76
Kenya expenditure at budgeted average rate less
Kenya expenditure at actual average rate
KES 22,093,870.30 @130 less KES 22,093,870.30 @135.76
Closing cash and bank balances translated
at closing rate for the year
Kenyan shillings 524,890.30 @135.76
7.
Liabilities
Golf Day entry fees and sponsorship
Challenge event refundable deposits|2021
£
13,933
( 10,245)
( 7,211)
( 3,866)|2020
£
4,812
9,381
( 2,743)
( 13,933)|
||( 7,389)|( 2,483)|
||2021
£
-
198|2020
£
7,640
98|
||198|7,738|
## Details
## Golf Day entry fees and sponsorship
Our planned Golf Day was cancelled and entry fees and sponorship were either refunded or, with permission, considered as a donation and transferred to the unrestricted fund as individual giving income.
## Challenge event refundable deposits
A refundable entry deposit of £100 was received in the year from our London Marathon 2021 participant.
page 10
## 8. Movement in funds
|Restricted Funds
Project & programme management
Kiteghe Primary School
Feeding Minds
Teacher salaries
Toilets4All
Water4Schools
Classrooms
Ngmabenyi Primary School
Mkamenyi
Mkamenyi (furniture)
Textbooks4All
Educational trips
Environmental trips
Right to Play
Unrestricted funds
General funds||Balance at
1 Apr '20
£
198
( 215)
15,709
1,197
1,814
10
( 61)
3,431
47,826
-
24
-
11
10|Incoming
resources
£
-
-
7,127
4,080
341
-
-
5,000
38,980
-
-
7
-
-|Transfers
£
19,274
215
753
29,429
2,910
1,000
61
( 4,080)
700
9,300
( 24)
( 7)
( 11)
( 10)|Outgoing
resources
£
19,472
-
13,494
34,211
4,998
385
-
1,194
68,733
7,654
-
-
-
-|Losses on
currency
£
( 533)
-
( 587)
( 1,487)
( 217)
( 17)
-
( 44)
( 2,988)
( 333)
-
-
-
-|Balance at
31 Mar '21
£
533
-
10,682
1,983
284
642
-
3,201
21,764
1,979
-
-
-
-|
|---|---|---|---|---|---|---|---|
|||69,957
21,230|55,534
110,919|59,511
( 59,511)|150,140
42,403|( 6,206)
( 1,183)|41,068
31,418|
|||21,230|110,919|( 59,511)|42,403|( 1,183)|31,418|
|||91,187|166,453|( 0)|192,543|( 7,389)|72,486|
Details of selected restricted funds
## Feeding Minds
Incoming resources to the fund included £4,000 from the Souter Charitable Trust. There were incoming transfers of £753 from the Ngambenyi Primary School to cover the cost of food provided to that school in the year.
## Ngambenyi Primary School
The charity receives an annual grant of £5,000 from _Hazel's Footprints Trust_ towards the running costs of Ngambenyi Primary. Transfers of £753 and £3,326 were made to the 'Feeding Minds' and 'Teacher salaries' funds respectively to cover the costs of these programmes at the school.
## Mkamenyi
Income included £28,850 from the RZK Foundation and £9,981 from the Geoff Herrington Foundation. There were incoming transfers of £10,000 from the 'Unrestricted' fund. Outgoing transfers of £9,300 were made to the 'Mkamenyi (furniture' fund which included £6,600 and £2,700 from the RZK Foundation and Geoff Herrington Foundation donations respectively.
page 11
## African Promise
## Independent Examiner’s Report for Annual Accounts 2020-21
I report to the trustees on my examination of the accounts of African Promise (the Trust) for the year ended 31 March 2021.
## Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- (1) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
- (2) the accounts do not accord with those records; or
- (3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Name: John Southworth
## Relevant professional qualification or body: FCA qualified
Member of the Institute of Chartered Accountants in England and Wales (ICAEW)
Address: Southworth and Co Ltd, Treasures, Four Elms, Edenbridge, Kent, TN8 6NE
Date: 28 February 2022
page 12